The Defense Ministry said the David's Sling system had successfully intercepted targets in a series of tests conducted with the US Missile Defense Agency, calling it a "major milestone."
"We believe that next year it's going to be operational," Defense Minister Moshe Yaalon told journalists at an appearance with visiting US House Speaker John Boehner. With Boehner nodding in agreement, Yaalon said the project was an example of strong US-Israeli relations.
David's Sling is part of what Israel calls a "multi-layer" missile defense system that includes the Arrow, which is being developed to intercept longer-range missiles from Iran, and the Iron Dome rocket-defense system, which is already operational.
The test was announced as world powers were trying to wrap up a nuclear agreement with Iran. Israel has objected to the emerging agreement, saying much of Iran's nuclear infrastructure would remain intact. It also has said Iran's continued development of long-range missiles is a sign of Iran's bad intentions.